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Attachment B
Technical Unit
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Negotiations 2016
Profs & Techs approve new 6-year contracts with Boeing!

SEATTLE
– Engineers and technical workers have accepted new six-year contract agreements with The Boeing Company that ensure continued market-leading salaries, retirement benefit growth and a choice of comprehensive medical plans, including a no-premium plan.

Contract vote results Count Percentage
Northwest Professional Unit
Accept 6,085 71.1%
Reject 2,460 28.7%
Northwest Technical Unit
Accept 2,825 73.2%
Reject 1,030 26.7%

Votes tallied Wednesday (Feb. 17) at SPEEA headquarters show engineers in the Professional unit voted 6,085 to Accept and 2,460 to Reject. The count for the Technical workers unit was 2,825 to Accept and 1,030 to Reject.

“These agreements were not easy but each grew from a strong desire on both sides to find common ground and negotiate contracts that work for SPEEA members and Boeing,” said SPEEA President Ryan Rule. “It was a unique opportunity that allowed these early contract talks. We’re glad it worked.”

Negotiated by the SPEEA Executive Board (Interim Negotiation Team) and recommended by the Executive Board and bargaining unit councils, the agreements take effect retroactive to Feb. 11 and are in effect through Oct. 6, 2022. A processing error resulted in the union reissuing ballots and delaying the vote count one week from the original timeline.

SPEEA and Boeing were scheduled to negotiate new contracts next fall, prior to the previous contracts’ Oct. 6 expiration dates. However, with both sides receptive to avoiding the sometimes confrontational atmosphere of contract talks, the SPEEA member-elected Executive Board began formal talks with Boeing in January.

Read the complete press release

Compensation
  • 2016 Salary Exercise

    • No change

  • 2017-2021 Salary Exercise

    • 5% compensation pools (wages and lump-sum award) guaranteed by contract

      • Profs: Company targeting a SPEEA-weighted average at 115% of national medians

        • 2015: $125,146 / $111,557 = 112.2%

        • 5% compensation pools until target (115%) achieved,
          remaining in lump-sum award

      • Techs: Company targeting a SPEEA weighted average 2017 at
        122%, 2018 at 121%, 2019 at 120%, 2020 at 119% and 2021 at 118%

      • 2015: $93,787 / $79,909 = 117.4%

      • 5% compensation pools until target achieved, if any remaining, in lump-sum award

    • Annual 0.5% promotional funds continue to be guaranteed by contract

  • 2022 Salary Exercise

    • Same as above, with 4.5% compensation pools (wages and lump-sum award)
      guaranteed by contract

      • Market targets of 115% for Profs, 117% for Techs

    • Annual 0.5% promotional funds continue to be guaranteed by contract

  • Vacation: Upon Ratification: Improved vacation accrual schedule as shown below

    • Resulting in over 25,000 more vacation days each year for Profs and Techs
  • Sick Leave: Upon Ratification: Up front lump-sum award of sick leave each year in
    lieu of monthly accrual

  • Continued participation in the Employee Incentive Plan (EIP)
Retirement
  • Effective July 1, 2016: Added Roth 401(k) feature, ability to defer EIP and
    lump-sum award, increased employee maximum contribution to 30%

  • Effective Jan. 1, 2017:

    • Boeing Company Employee Retirement Plan (BCERP) standard conversion
      factor increases to $100, effective Jan. 1, 2017

    • Option to roll over cash value into IRA or 401(k) (more favorable than required by law)

    • Lump-sum awards (if applicable) count for final average earnings

  • Company matching remains unchanged until Jan. 1, 2019, at which time all receive
    75% of the first 8% (no change for those hired before 2013).

  • BCERP soft freeze effective Jan. 1, 2019:

    • No more BCERP additional credited service, however continued final average
      earnings growth impacts alternate formulas.
Medical, Dental, Life & Disability
  • Plans stay the same through 2017

  • Effective Jan. 1, 2018 – All Locations

    • Medical:

      • Traditional Medical Plan – 5% contribution (2018 – 2022)

        • $300 deductible ($900 per family), then 90%/10% coinsurance

        • Medical out-of-pocket max $2,000 per person
          ($4,500 per family) (including deductible)

        • Naturopaths now recognized

        • No change to in-network retail prescription co-pays

        • New prescription out-of-pocket max $4,000 per person ($8,000 per family)
  • Select Network, Group Health, etc. – 12% contribution
    • Office and Emergency Room co-pays increase
    • New $250 co-pay per hospitalization
    • Select Network: Network expanded in Washington state

  • Advantage+ – 0% contribution

    • Lowered deductibles, higher Health Savings Account (HSA) contributions

      • HSA 2018: 75% deductible, 50% thereafter

    • Deductibles, out-of-pocket maximums and associated company HSA contributions grow with federal regulations

  • Preferred Partnership Option

    • Option for Traditional, Select Network and Advantage+ in the Puget Sound only

      • Free generics and free primary care office visits

        • After deductible if in Advantage+
    • Lower paycheck contributions or increased company contribution to the HSA

      • Non-HSA -$30/-$60/-$90

      • HSA 2018: 100% deductible, 80% thereafter

    • Quicker access to network primary care providers and specialists

    • More after-hours care availability

    • Dedicated care teams for complex medical situations

  • Health Risk Assessment & biometric screenings

    • $20/$40 monthly additional contributions for non-compliance

  • Affordable Care Act:

    • Employees will not pay excise tax (Cadillac Tax)

      • If threshold met, benefits and premiums reduced equally - equality subject to agreement between Boeing and SPEEA

  • Retiree Medical:

    • Contributions: No change

    • Retiree medical coverage remains protected for those hired before 2007

    • Medical plan benefits: Same as active employees

  • Dental Plans

  • Effective Jan. 1, 2020, increase Preferred Dental annual maximum
    from $2,000 to $2,500

  • Long-Term Disability (LTD)

  • All SPEEA-represented employees will be covered on Jan. 1, 2018 (company paid)

  • 10% employee-paid optional ‘buy up’ available, with one-time open
    enrollment (without Evidence of Insurability (EOI)) for Jan. 1, 2018

  • If not currently enrolled in LTD, pre-existing conditions apply

    • 12 month pre-existing with three-month look back
Workforce
  • Movement of existing work to other locations

    • Boeing commits to extraordinary efforts to place individuals

    • If placement doesn’t occur, individuals are eligible to receive:

      • Six months of company subsidized (just like active employees)
        COBRA medical and dental

      • Two weeks of pay for each year of company service (lump sum)

        • Minimum 26 weeks, maximum 60 weeks

  • Voluntary layoff benefits doubled up to 26 weeks of pay
Ed Wells Partnership
  • 2% funding growth remains
Adoption Assistance
  • Special adoption assistance plan codified in new Letter of Understanding (LOU)

    • Reimbursement of up to $5,000 per child, up to two per employee
 

The National Labor Relations Act (NLRA) extends and protects the rights of employees, including your rights to:
  • Wear union buttons, clothing, stickers, or display union items.

  • Read, distribute and discuss union literature in non-work areas
    during non-work times, including breaks and lunch hours.

  • Sign petitions and take surveys related to wages, hours, working
    conditions and other job issues.

  • Attend union meetings during lunch hours, breaks and outside of work.

  • Ask other employees to support the union.